Proposal for the Auditing of Charitable Nonprofit Organizations
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Date
2014-06
Authors
Breuner, Matthew
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon
Abstract
American public charities received over $1.59 trillion in revenue in 20ll.
Despite receiving funding equivalent to 10% of US GDP, the nonprofit sector still has
finite resources, leading to fierce competition among the organizations for donations
and volunteers. This competition necessitates the need for verifiable comparability
between nonprofits for potential donors and fraud prevention.
My solution for these unresolved needs is the implementation of a program to
require the external audits of larger non profits with the audited financials being made public and with the internal controls of nonprofit organizations (NPOs) being developed
and improved. The organization best suited to implement this plan is the IRS. The IRS will
need authorization to expand its responsibilities/power to mandate audits for NPOS.
These responsibilities include the mandating of audits, the facilitation of public access
to audit findings, and the potential revocation of tax-exempt status for NPOs not in
compliance.
Description
32 pages. A thesis presented to the Department of Accounting and the Clark Honors College of the University of Oregon in partial fulfillment of the requirements for degree of Bachelor of Science, Spring 2014.
Keywords
Audit nonprofits, Audit, Nonprofit organizations, Charity, Accounting